The German Trade Union Federation (DGB) is calling for a permanent increase in the federal contribution to the pension insurance system. According to DGB Chairwoman Yasmin Fahimi, the aging of the population must be borne by all, not just by those paying contributions.
Fahimi told the Rheinische Post that the “baby boomer effect” is a societal challenge that requires a collective solution. She believes a higher contribution to the pension insurance is justified, as the pension level must be stabilized at 48 percent for all generations, not just until 2031.
To generate higher revenue, the wealthy must pay more taxes, Fahimi said. “We must ensure that overall tax revenue increases again, through more growth and higher taxes for the wealthy and super-rich. They will finally have to contribute more to the common good. We cannot tolerate unfair behavior any longer. We are demanding the reintroduction of the wealth tax.”
Inclusion of self-employed individuals in the pension insurance system would also stabilize their income, Fahimi suggested. “I propose that only younger self-employed individuals be included in the pension insurance. This would significantly contribute to a smoother demographic curve.” The planned active pension scheme must not lead to younger people being denied a permanent position due to the continued employment of retirees.
The coalition’s plan to set a comprehensive pension level for the statutory, occupational and private pension systems is also of interest to Fahimi. “I would consider a comprehensive pension level of 70 percent of the average net income to be reasonable” she said.